Bellway Calls for Immediate Stamp Duty Cut to Boost Housing

Housebuilder Bellway has urged the UK government to implement an immediate cut to stamp duty to stimulate the struggling housing market. The call comes as the company reported a decline in demand due to rising mortgage rates and ongoing inflation in building costs. Chief Executive Jason Honeyman emphasized the need for swift policy changes to assist first-time buyers and improve access to housing across all tenures. He stated, "In order to ease affordability constraints and stimulate demand, an immediate reduction in stamp duty alongside a government-backed deposit support scheme for first-time buyers would both drive economic growth and accelerate the delivery of much-needed new homes across the country."

Key Details

The appeal follows Prime Minister Andy Burnham's dismissal of significant changes to stamp duty in the upcoming Autumn Budget. Burnham had previously indicated that a shift to a land-value tax system was not under consideration. Despite this, Bellway's push for a tax reduction aligns with similar calls from other housebuilders, including Barratt and Redrow, who are also seeking government intervention to bolster housing demand.

Background

Bellway reported that competition in the housing market increased by 10.8% year-over-year, with 9,695 homes sold in the year ending July 31. The company anticipates underlying operating profits to rise to approximately £320 million, up from £303.5 million the previous year. However, it noted a moderation in customer demand since April, attributed to higher mortgage rates. Bellway continues to focus on financial stability and cash generation as it navigates these challenging market conditions.

Related coverage: Burnham faces tax hikes or spending cuts to fund pledges.

Based on reporting by: independent.co.uk, cityam.com